Why Should I Private Label?"CONTRACTORS WHO COMMIT TO PRIVATE LABELING NEVER LOOK BACK"

Private labeling was pioneered by a few large retail oriented contractors in the mid to late 1990s. Others looked at the concept and made their own leap. These were not inconsequential contractors, they were some of the largest and most successful in the country. These retailing contractors private labeled for the following reasons:

Less Price Competition

Private labeling makes it impossible for homeowners to lure contractors into a reverse auction for the sale and installation of the identical products using the same brand.

Greater Equity

Private label companies build brand equity that carries a tangible value when it's time to sell.

Control Over the Brand

A company's brand is the only brand you own, the only brand that can't be taken away, and the only brand that can't be offered to a competitor.

Repeat Business

When consumers look at the brand name on a furnace or air conditioner and see the private labeled name (and phone number and website) it's natural to call the name on the box. Private labeling locks customers in for the life of the product, no matter who happens to own the home.

Profitability

The companies that private label report greater bottom line profits because they are no longer paying for manufacturer brand building, dealer meetings, and incentive trips. The savings fall to the bottom line.

“The biggest surprise you will have about private labeling is in how well it will work out. We're 99% private label and I'm not looking in the rear view mirror. It was without exception one of the best decisions we've ever made."

- Steven J Miles

“We are virtually 98% private label and haven't skipped a beat. Our customers love our line. Although our sales are only up about 2% over last year as of today, our profit numbers are up very significantly
...triple digit! Feeling great!"

- Robert Nelson

“We found that only a very small percentage of consumers care about the brand name on the piece of equipment. They are concerned about the installing company first and warranty second. With our private-label system, we feel we are offering the best of both."